Source · Select Committees · Business and Trade Committee
Recommendation 34
34
Paragraph: 175
There is a clear lack of direction with respect to the future of the nation’s...
Conclusion
There is a clear lack of direction with respect to the future of the nation’s blast furnaces both within the Government and in industry. A range of options exist for the decarbonisation of primary steelmaking, including carbon capture and storage (CCS), hydrogen, or a mixture of technologies running in parallel. It will ultimately be for the sector and each individual business, with its own unique sites and products, to work out which technology is optimal for them. However, to enable these decisions industry requires certainty from Government on infrastructure and wider system changes.
Paragraph Reference:
175
Government Response
Not Addressed
HM Government
Not Addressed
77. We are working with the sector to better understand their decarbonisation investment plans. These plans may include switching to Electric Arc Furnace (EAF) production methods, carbon capture, usage and storage (CCUS) on existing blast furnaces, hydrogen steelmaking, or other decarbonisation activities. 78. It is important that we work with industry to understand the commercial decisions they will be taking for the future of sites so that any potential Government support is utilised as effectively as possible. The optimum decarbonisation route for each site will be different and, which route is best is a commercial decision for the companies operating these sites. 79. The Net Zero Strategy, published in October, outlines all existing and new support available for industrial decarbonisation projects, for which the steel sector will be able to bid. 80. Further to the Net Zero Strategy, our work on growing the circular economy has focused attention on how the steel scrap market contributes to our ambitions, both on resource efficiency and the decarbonisation agenda. We look forward to working closely with both the steel and scrap sectors to find mutually beneficial solutions in this area.